Kakuzi warns 2013 pretax to be down 25 pct or more
27 November 2013, 13:07
Nairobi - Kenyan agricultural firm, Kakuzi Ltd, warned on Wednesday that its full-year 2013 earnings would be at least 25 percent lower than last year, citing falling black tea prices and lower avocado production.
Kakuzi, which also produces pineapples, had posted a full-year pretax profit of 479 million shillings in 2012, down 26 percent on the previous year.
Earlier this month, two other tea companies, Kapchorua and Williamson Tea, said they were concerned by falling prices at the weekly tea auction, amid increased tea production.
They said tea prices had hit a seven-year low at the end of September, down 30 percent on the same period a year before.
Kenya is the world's leading exporter of black tea and the crop is a major foreign exchange earner in east Africa's largest economy, alongside horticulture and tourism.